The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says Nigeria has saved more than ₦6 trillion in fuel import losses following the full deregulation of the downstream sector and key foreign exchange reforms.
The Chief Executive of NMDPRA, Mr Saidu Mohammed, disclosed this at the ongoing Nigeria International Energy Summit (NIES) 2026 in Abuja, noting that the savings were recorded within the first nine months of 2025.
Speaking while delivering a keynote address at the Mid/Downstream Transformation Debate themed “Driving Nigeria’s Downstream Renaissance: Regulation, Investment, and Market Confidence,” Mohammed attributed the sector’s turnaround to the bold economic reforms initiated by President Bola Ahmed Tinubu.
According to him, the combined effect of downstream deregulation, forex market harmonisation, incentives for gas utilisation, and the adoption of naira-based crude and product trading has significantly reduced Nigeria’s dependence on imported petroleum products.
“The cumulative impact of full downstream deregulation, forex market harmonisation, incentivisation and deepening of gas utilisation, as well as trading crude and products in naira, has reduced fiscal and economic losses from petroleum product imports by over ₦6 trillion in the first nine months of 2025,” Mohammed said.
He commended the President and members of the Federal Executive Council for what he described as enduring leadership legacies in the downstream energy sector.
Mohammed recalled that for decades, Nigeria’s downstream value chain was plagued by infrastructure deficits, inefficient supply chains, weak market structures, regulatory non-compliance, inadequate investment, and poor safety and environmental standards.
“Today, that narrative is rapidly changing. The sector is witnessing early but irreversible signs of transformation driven by bold reforms, enabled by investment, and sustained by effective regulatory oversight,” he said.
He explained that the implementation of the Petroleum Industry Act (PIA) 2021 has reshaped the downstream sector into a fully liberalised market, eliminating persistent fuel scarcity and supply uncertainty.
According to him, improved supply stability has ensured consistent availability of petroleum products, while pricing is now increasingly driven by market fundamentals—creating the confidence required to attract long-term investment.
Mohammed also highlighted a major shift in the downstream supply chain, which had historically relied almost entirely on imported fuel.
He noted that the sector is now benefiting from increased domestic refining capacity, expanded gas-based alternative fuels, improved logistics infrastructure, and stronger private-sector participation.
At the centre of this transformation, he said, is the Dangote Petroleum Refinery, described as the world’s largest single-train refinery with an installed capacity of 650,000 barrels per day.
“The refinery is already meeting a significant portion—and in some cases all—of Nigeria’s domestic petroleum product requirements. Its optimal operation and future expansion are critical to Nigeria’s ambition of becoming a regional and continental energy hub,” he stated.
Mohammed expressed optimism that additional refinery projects with issued Licences to Establish (LTEs), alongside the ongoing rehabilitation of NNPC Ltd. refineries, would raise Nigeria’s installed refining capacity to over one million barrels per day in the medium term.
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2026-02-05
